Press Release
O Minister of Finance: Listen and be Mindful, Verily We are Trustworthy Advisors
(Translated)

Reuters reported on 13/10/2014 CE that "The annual inflation rate in Sudan has slightly declined to 39.2%." The fact is this number is very large, especially when compared to previous years! ... The Central Bureau of Statistics published a report in March 2014 CE, on its website in which it stated that the general inflation rate reached in 2009 (11.2%), then it surged in the year 2013 CE to (36.5%), and here it is rising up to 39.2% in September this year. The issue is truly alarming of misery and depression for the people of Sudan! So we hereby address the Minister of Finance and behind the regime, as trustworthy advisers, and say:

It is known economically that inflation leads to high prices due to weak purchasing power of the local currency. The impact of this on the economic life is very serious, especially if it continues at frequent intervals; and it is so in Sudan. Since the Sudanese pound is not attributable to a fixed canonical unit, the mandatory Monetary System becomes a trap that causes crises in the country. So that the purchasing power of the pound plunges into an abysmal place and people are seared with the blaze of the exorbitant prices!

It is your duty O Minister to realize that the only monetary and financial policies that are able to stop this significant deterioration in the strength of the currency- is the Islamic financial and monetary policies which alone ensure monetary stability, stable exchange rates, and a boom in international trade ... The rightly-guided Khilafah "Caliphate" State will apply the (gold-based) system which is the only system that carries the following economic benefits:

1. The fact that gold and silver are a commodity that its global production is controlled by the costs of exploration, extraction, and the demand for it compared to the demand for other commodities and services, makes the world supply of money not at the mercy of the colonial powers; printing whenever they wanted to improve the balance of payments and exchange with other countries.

2. The (gold-based) system does not expose the world suddenly to a surplus in its circulation, as it happens in the paper currency, and thus the currency gets the quality of consistency and stability, and increases the trust in it.

3. The (gold-based) system contains a balance to amend the imbalance of payments among nations automatically, without the intervention of central banks, as the intervention happening now. The increase in imports over exports would increase in the proceeds of other countries of the State's money, and will increase the transport of gold and silver abroad, and thus lowering the prices domestically which makes local commodities cheaper than the imported, thereby reducing import in the end. In addition, the state will fear losing its reserves of gold and silver, if the imbalance in the payments continues. While under the paper-based system, the state resorts, wherever the balance in the payments is disturbed, to increase the printing of banknote; because there are no restrictions on its issuance, which will lead to more inflation and lower purchasing power of the currency. In the gold and silver standard, it is not possible for the state to expand in the issuance of banknotes, as long as the paper currency is convertible into gold and silver at a specified price; because the state fears that if it expands in the issuance of banknotes, the demand for gold will increase, and it will be unable to face it, or that gold will be transported abroad and lose its reserves.

4. The fact that gold is a monetary unit not controlled by the states gives it a great advantage, in terms of the amount of any cash in the country is enough for the market's needs of cash exchange, regardless of whether they are large or small, where commodities take the price of exchanging with it. So the production of other commodities increases, and the prices fall. While in the paper-based system the increase in cash does not lead to that, but rather leads to a decline in the purchasing power of money, which leads to inflation. Thus it is clear that the system of gold and silver is the one which eliminates inflation, while the paper-based system increases its intensity.

5. The (gold-based) standard enjoys the fact that the exchange rate between the currencies of different countries is fixed, as each coin, is fixed by a specific amount of gold or silver. Therefore, the whole world will have one currency in reality which is of gold or silver, and the world then will enjoy free trade, movement of commodities and money between different countries, and the difficulties of pieces and hard currencies will disappear, resulting in international trade booms; for traders would not fear the expansion foreign trade; as the exchange rate will be fixed.

Finally we remind you O Minister that the monetary and financial stability did not happen in the world, except during the period of the Khilafah "Caliphate" rule. Thus the Khilafah "Caliphate" through the application of the (gold-based) standard was the touchstone; that reserved to the world its monetary and financial stability. Therefore all the countries of the world followed the steps of the Khilafah "Caliphate" and gold and silver became the currency in circulation, so there were no monetary problems in the world. Rather, problems did not occur except after the world abandoned that standard, from the beginning of the year 1914, thereby the world seared with the fire of the major crises with all its ills and its matter!

And the final conclusion is that, we resolve to establish the rightly-guided Khilafah "Caliphate" on the method of the Prophethood and with us the masses of the best nation raised for the people; the nation of the great might ... So, could the regime retract and submit the rule to the sincere men of the Ummah in Hizb ut Tahrir, so that Khilafah "Caliphate" is established, Islam is applied, and inflation and other country's crises are eliminated with the knockout blow?

(هَذَا بَيَانٌ لِلنَّاسِ وَهُدًى وَمَوْعِظَةٌ لِلْمُتَّقِينَ)

"This [Qur'an] is a clear statement to [all] the people and a guidance and instruction for those conscious of Allah." [Al-i-Imran: 138]

Ibrahim Othman (Abu Khalil)
Official Spokesman of Hizb ut Tahrir
in Wilayah Sudan